Regulations

Honda supports legislation mandating recall repairs before car registration

Honda is supporting legislation that would require any outstanding safety recall to be completed before a vehicle could be legally registered in a state, thereby increasing vehicle recall completion rates.

The bill was introduced on March 2, 2015, by Sen. Edward Markey (D-Massachusetts) and Sen. Richard Blumenthal (D-Connecticut).

“Our goal is to achieve a 100% repair rate for every recall in order to prevent injuries and save lives, and this legislation will help achieve that. We look forward to working with Sens. Markey and Blumenthal, the Congress, and other safety stakeholders as this proposal works its way through the legislative process,” says Rick Schostek, executive vice president of Honda North America Inc.

About one-third of all cars and trucks recalled in the U.S. for safety defects are never brought to the dealer for repair. Newer vehicles have higher completion rates, but the completion rate is much lower for older vehicles.

Honda called for this type of legislation on Nov. 20, 2014, in testimony before the Senate Committee on Energy and Commerce, covering faulty Takata airbag inflators found in many Honda vehicles.

In response to the Takata recall, Honda has mailed millions notifications in both English and Spanish, made phone calls, used social media, sent notices by registered mail and overnight delivery services, and even hired special investigative firms to locate registered owners.

“Far too many affected vehicles remain unrepaired. Honda believes that requiring the resolution of open recalls before completing registration would greatly reduce the risk of death and injury that can occur to people in unrepaired older model vehicles equipped with Takata airbag inflators,” Schostek says. www.hondacars.com

Automakers outperform emissions regulations

For the second consecutive model year, the automotive industry outperformed the national greenhouse gas (GHG) emissions standards by a wide margin. Overall industry compliance in model year 2013 was 12 grams/mile, or 1.4mpg, better than required by the 2013 standard, according to the Environmental Protection Agency’s (EPA’s) annual “Greenhouse Gas Emissions Standards for Light Duty Vehicles: Manufacturer’s Performance Report.”

EPA Administrator Gina McCarthy says, “Automakers are racing to meet our goals. The American auto industry has never been stronger; we’re creating jobs here in the U.S., selling cleaner cars here and overseas, and consumers are really benefiting from the innovations spurred by these standards.”

EPA’s GHG emissions standards cover light-duty vehicles from model year 2012 to 2025. The standards are projected to save 12 billion barrels of oil, and cut 6 billion metric tons of greenhouse gases throughout the lifetime of vehicles sold in these years. The standards are also projected to save buyers of 2025 model year vehicles more than $8,000 in fuel costs for that vehicle’s lifetime. www.epa.gov
 

Report findings

• Manufacturers representing more than 99% of sales met 2012 and 2013 standards. The remaining manufacturers have more time to comply.
• Optional flexibilities built into the standards, such as improved air conditioning systems and the use of fleet averaging, continue to increase consumer choice, spur technology innovation, and decrease compliance costs.
• 2013 vehicles averaged a record 24.1mpg – up 0.5mpg from 2012 and nearly 5mpg since 2004.
• Fuel economy has increased in eight of the last nine years.
• There are more than 3x as many 30mpg vehicles available than in 2008, and SUV fuel economy has been increasing faster than for other vehicle types.

Alcoa approved for $259M federal loan

Alcoa has received conditional commitment for a $259 million loan from the U.S. Department of Energy under the Advanced Technology Vehicles Manufacturing (ATVM) loan program, the same program that funded investments from Ford, Nissan, and Tesla, as well as the failed loan to bankrupt plug-in hybrid producer Fisker Automotive.

If finalized, the loan would support the company’s Alcoa, Tennessee, manufacturing facility, where the company will produce high-strength aluminum for North American automakers looking to lightweight their vehicles.

“The Department’s ATVM loan program can play an important role in helping to finance expanded domestic manufacturing of fuel-efficient technologies that will support the next generation of advanced vehicles and protect the environment by reducing greenhouse gas emissions,” says Energy Secretary Ernest Moniz. “The program has supported the production of millions of American-made cars that are more fuel-efficient.”

Klaus Kleinfeld, Alcoa chairman and CEO, adds, “Alcoa is pleased to be part of the government’s program to encourage a greater shift to aluminum-intensive vehicles that are safer, lighter, and more fuel-efficient.”

The plant’s expansion will provide additional aluminum sheet manufacturing capacity intended for the U.S. automotive market. This type of high-strength aluminum helps boost fuel economy by reducing vehicle weight while still maintaining safety. High volume models, such as the Ford F-150, are using aluminum-intensive designs to boost fuel economy performance through lightweighting.

Alcoa officials estimate that expanded production will create an additional 200 permanent full-time jobs, in addition to 400 jobs at the peak of construction.

The conditional commitment is a step toward issuing the loan, and the department will monitor the project’s development and work to reach a final agreement. www.energy.gov; www.alcoa.com